With impeccable timing, I sold 50 covered call contracts (Mar 09 $5) for JAVA on Tuesday Mar 17. The underlying stock shot up the next day, but nobody exercised the option. I suppose they just traded it for a quick $18K profit. The market is now closed, but as far as I can tell, nobody has exercised the options. They seem to expire on Sat (is that right, on a non-trading day?). I think I read somewhere that ETrade automatically exercises the options on the expiration date, but I'm not sure. So, what happens now? Do they in fact get automatically exercised tomorrow? Will the stock just "disappear" from my account? Is there any way I can stop that? What if the option owner doesn't want to exercise? Can he stop it?
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